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Project files are normally kept on your device while you are developing the the video touchcast and afterwards if you think you may revise or reuse the project (to update it or create another video).  
If you chose to delete the project file from your device, select the project from your
My Projects list, tap the More Actions button, and finally the Delete from iPad option.  This permanently removes the project file from your device. 

Note: This action CANNOT be undone, make sure you create a backup by generating a Fetch Code (TouchCast Studio: How to share and fetch a project code) before you delete from your iPad in case you want to work on it in this particular video in the future. saving to TouchCast Fabric first. This will keep a copy on the server that can be retrieved at a later date.



Touchcasts

Touchcasts can also be stored locally on your device or and uploaded to Fabric as wellfor sharing.
You can tell if the touchcast is stored locally, in Fabric or both by the icons shown below:

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You will notice that he option changes depending on where the touchcast is currently stored.
Below is an example of a touchcast that is stored locally and within Fabric, you have the option to delete from iPad and Fabric.
Note if you delete from iPad you can still can share your touchcast from Fabric, it will just free space on your iPads iPad's storage.